Cyprus Purchasing Guide:

Purchasing a home in Cyprus is relatively easy, however it is important to be aware of several points. *A foreigner can purchase for their personal use an apartment, a house, villa or a piece of land. *The maximum allowed area is 4,013 sq. metres. (In certain circumstances this can be exceeded.) *As a matter of course, permission for the transfer of property to a foreigner must be sought from the Cyprus Council of Ministers. (This is normally a formality.) In the meantime, the purchaser may take possession of the property. The application to the ministers can be made within a reasonable time after the contract of sale. *Real Estate transfer taxes are payable in order to transfer freehold ownership to the name of the purchaser. This is done when the authorities have issued the title deed and the purchase has been completed. The fees are on a graduated scale:

Property Value in CYP	Transfer fee rate
Up to 50,000	3%
From 50,000 to 100,000	5%
Over 100,000	8%

If, for example the price is Cyp 90,000, the first 50,000 will be at 3%, (Cyp 1,500) The next 40,000 will be at 5% (Cyp 2,000) Total Cyp 3,500. If the purchase is made between husband and wife, the transfer fee on the above would be the first Cyp 45,000 at 3% (Cyp 1,350) and the same would apply to the next Cyp 45,000 the total Cyp 2,700. *Stamp duty applies at the signing of the contract. This is at 1.5% for each Cyp 1,000 to Cyp 100,000. Above this is 2% for each Cyp 1,000. On a property of say Cyp 150,000 price, the tax would be:

The First	CYP 100,000	1.5%	CYP 150
The Next	CYP 50,000	2%	CYP 100
		Total	CYP 250

There is a further annual tax, the immovable property tax. The immovable property tax is an annual tax based on the value of the property. This will be as follows:

Up to CYP 100,000	exempt
100,001 to 250,000	2%
250,001 to 500,000	3%
500,001	3.5%

Immovable property tax is based on values at 1980 which is much lower than the current value. * As with all countries, local authority taxes and rates apply. This covers lighting, sewerage, rubbish collection etc. This is in the region of between Cyp50-100 per annum. * Acquiring the title deed. This is a simple procedure of transfer of ownership from vendor to purchaser through the Cyprus Land Registry Office. In case of a non Cypriot, a prerequisite of registration is proof that the property has been paid for with foreign exchange. When one purchases a property under construction, especially an apartment there is probably

no title deed in existence for the home. It is important in this case that the purchasers lawyer should consider this and include this in the contract of purchase. At all times the lawyer will be there to safeguards the interests of the purchaser. *Legal Fees. The legal fees usually charged by a lawyer are approximately Cyp500. This covers management of the sale and general agreement (regulating the use of common areas, if applicable.) and submission to the land registry. *Residential permits come in different categories. They are easily obtained by those living on the island who have purchased property. A TEMPORARY PERMIT simply requires existence of a bank account in Cyprus and a sales agreement for the property purchased. This permit can be from one to four years. A PERMANENT PERMIT comes in different categories. As well as the above ,the applicant must have proof of income of no less than Cyp 5,300 per annum for a couple. The application is made to the Committee of Aliens Control. The categories are (A) For those who wish to open an off shore office in Cyprus. (B) For those who wish to open a business in Cyprus. (Minimum capital required Cyp 150,000.) The business must be proved to not have a negative impact on the economy of Cyprus. (C) Those who wish to be employed by a Cypriot business. This must not have adverse effect on employment of local labour in the same category. (D) Those wishing like to live in Cyprus without employment. (An income of no less than Cyp 3,800 is necessary. * There are strong legal safeguards for purchasers. *Property can be sold at any time with no restrictions. If the property is sold to a non Cypriot, the total amount can be repatriated without any restrictions. If the property is sold to a Cypriot who pays in Cyp the seller can repatriate (A) The original cost, plus any improvement costs. Plus transfer cost, plus inflation, plus Cyp 50,000 per person per year. *Taxes in Cyprus are quite beneficial to U. K. citizens retiring to Cyprus. To begin with , as there is a U. K./ Cyprus double taxation treaty, pensioners can receive both government and private pensions free from withholding taxes in the U. K. This is generally not available elsewhere.

In Cyprus retirees are taxed at only 5% per annum on all imported pensions and there is an annual exemption of Cyp 2000. This creates considerable savings for pensioners. Cyprus only taxes assets that are brought into Cyprus rather than most who tax world wide income. Overall Cyprus offers many taxation benefits for retirees. * Duty free privileges also apply. A duty free car is allowed for people retiring to Cyprus. This makes the cost a little over half of what you would pay in the U. K. Personal effects, household goods and furniture can also be imported duty free, providing they are for personal use and have been used for a while.